Vancouver, Wash.-based PeaceHealth has shared plans to reduce its workforce by 1% after months of financial and healthcare market review.
All PeaceHealth employees received a May 22 email from Richard DeCarlo, executive vice president and COO, and Sarah Ness, executive vice president and chief administration officer, obtained by Becker’s, that said certain programs and workforce across Springfield, Ore.-based PeaceHealth Sacred Heart at RiverBend Medical Centers and Vancouver-based PeaceHealth SouthWest Medical Center would be affected by the reductions. It also said affected employees would be notified by the end of the day on May 22.
The reduction includes caregiver roles and shuttering some of the nonprofit, Catholic-based health system’s roles, according to a May 26 PeaceHealth statement shared with Becker’s.
PeaceHealth is also implementing a hiring freeze throughout 2025 across all roles except those that are clinician, patient-facing or needed for “effective operations,” the email said.
“In line with our value of respect, we offer comprehensive transitional support consistent with our policies and practices to all impacted caregivers,” the statement said. “Where possible, we are working to match qualified caregivers with open clinical roles across PeaceHealth.”
Kevin Mealy, a spokesperson for the Oregon Nurses Association, which represents some employees at PeaceHealth Sacred Heart RiverBend, said in a May 26 statement shared with Becker’s that the organization is deeply concerned about how the health system’s workforce cuts will affect patients and providers.
“Cutting frontline caregivers at PeaceHealth Sacred Heart RiverBend would strain workers who are already stretched thin,” the statement said. “PeaceHealth must be open and honest with the public about its plans and partner with local nurses and healthcare providers to ensure caregivers and community members have a voice in our healthcare and are treated with compassion and respect.”
A spokesperson for the Washington State Nurses Association said in a May 27 statement shared with Becker’s that their organization is also concerned by the reductions and is working to get more information.
Affected employees were either laid off, effective immediately or within two weeks of May 22, dependent on their roles, organizational needs or contractual obligations. Along with the reductions, PeaceHealth has also recently filled multiple “key strategic leadership roles” and is achieving savings through contract reviews, recruitment programs and education, the letter said.
